EquityMultiple Crosses $5 Million in Investor Subscription with Successful First Launch of Its Ascent Income Fund
The real estate investing platform for self-directed investors offers the Fund as a yield and flexible liquidity option for private commercial real estate loans.
NEW YORK, October 25, 2023 (Newswire.com) - EquityMultiple, an innovative real estate investing platform for self-directed investors, today announced a successful first closing of its recently launched Ascent Income Fund. The firm received millions in pledged interest during a “pre-launch” phase and has now crossed over $5M in investor subscription into the Ascent Income Fund.
The Fund, predicated on private commercial real estate loans, offers compelling yield and relatively flexible liquidity options at a time when transaction volume in the real estate crowdfunding space is light, and investor appetite for JV equity syndications is generally lower than in past years. EquityMultiple has made the Ascent Income Fund a flagship of their offerings, complementing the Alpine Note, which launched in 2021 and has attracted over $160M in capital from the firm’s network of self-directed accredited investors.
Remarked CEO Charles Clinton, “We’re very pleased to see the early momentum following the launch of Ascent. Along with Alpine Notes, we feel that the Ascent Income Fund can serve as a pillar of an alternative portfolio for individual investors who are looking to escape public market volatility and build in stable sources of yield for uncertain times.”
Some of the benefits the Ascent Income Fund brings to self-directed investors are as follows:
- Yield Focused — 11-13% target annual rate of return, paid quarterly.
- Security of CRE Debt — The Fund targets mezzanine and first-mortgage loans, bringing investors the benefit of assets that hold payment priority, securitization on the underlying asset, or both. The Fund targets an 80% max LTV for debt positions.
- Security of CRE Debt — The Fund invests in CRE debt, bringing investors the benefit of assets that hold payment priority, securitization on the underlying asset, or both.
- A Simplified Tax Process — Investors will receive just one 1099 for investments in the Ascent Income Fund.
- Liquidity — Redemption options are available starting one year after each investment.
The Fund also seeks to capitalize on a favorable moment for CRE debt investors. The crisis in the regional and mid-sized banking sector — beginning with the collapse of Silicon Valley Bank — has brought about a credit crunch in the middle market of commercial real estate transactions. The types of banks that traditionally lend to middle-market real estate sponsors and operators are now tightening balance sheets and issuing fewer loans. This creates opportunities for alternative lenders, like EquityMultiple, to achieve favorable, secured returns while lending to credit-worthy borrowers at conservative leverage. The Ascent Income Fund is a diversified pool of these debt positions, available to EquityMultiple investors at a $20k minimum investment, a much lower barrier to entry than many other private real estate funds.
Remarked EquityMultiple CIO and Co-Founder Marious Sjulsen, “Ascent reflects our thesis on the market in this moment. Given where we are with interest rates and lack of liquidity in the market. There are still plenty of good operators doing quality deals, the capital markets situation is just more challenging than it was 18 months ago. So we feel like we’re serving both sides of the market and providing a very innovative product to individual investors.”
The Ascent Income Fund will be available in perpetuity on the EquityMultiple platform with rolling closings.
EquityMultiple is a premier real estate platform for self-directed accredited investors. The firm lowers barriers to entry, flattening access to exclusive investment opportunities. EquityMultiple combines industry-leading asset management, innovative technology, strong due diligence and personalized support to provide an unparalleled investing experience.